Please Use Excel For This Question!!! Thanks

Please Use Excel For This Question!!! Thanks

Please Use Excel For This Question!!! Thanks

(a) You wish to invest $10,000 for a certain amount of time and you want to see what rate of interest, i (2), that you need to earn in order to achieve a future goal. Set up a table and calculate the rate i (2) that you would need to earn if you invested the $10,000 for 3, 5 and 7 years. Calculate the rate assuming the accumulated amount at the end of each of these periods is $10,500, $11,000, $11,500, $12,000, , $21,000. (You should end up with 22 x 3 = 66 calculations) (3 marks) (b) You also wish to see how long will it take an investment of $10,000 to grow to a certain amount at a certain rate of interest, i (4). To do this, set up a table and calculate the time (in years) it would take for $10,000 to accumulate to $12,000, $12,500, $13,000, , $24,000. Use the following 5 rates of interest, compounded quarterly: 4%, 5%, 6%, 7% and 8%. (You will end up with 25 x 5 = 125 calculations) Then do TWO extra rows at the end of your table (leave one empty row between end of your table and these two calculations): (i) Calculate the time (in years) it would take to double your investment (to $20,000) using the Rule of 70 (make it clear on your spreadsheet that this is the Rule of 70) (ii) Then compare your results to the values you calculated for the $20,000 in your table by taking those values and subtracting them from the value you calculated using the Rule of 70.

4. Answer the following questions. (a) You wish to invest $10,000 for a certain amount of time and you want to see what rate of interest, il2), that you need to earn in order to achieve a future goal. Set up a table and calculate the rate il2) that you would need to earn if you invested the $10,000 for 3, 5 and 7 years. Calculate the rate assuming the accumulated amount at the end of each of these periods is $10,500, $11,000, $11,500, $12,000, ..., $21,000. (You should end up with 22 x 3 = 66 calculations) (3 marks) (b) You also wish to see how long will it take an investment of $10,000 to grow to a certain amount at a certain rate of interest, 714). To do this, set up a table and calculate the time (in years) it would take for $10,000 to accumulate to $12,000, $12,500, $13,000, ... , $24,000. Use the following 5 rates of interest, compounded quarterly: 4%, 5%, 6%, 7% and 8%. (You will end up with 25 x 5 = 125 calculations) Then do TWO extra rows at the end of your table (leave one empty row between end of your table and these two calculations): (i) Calculate the time (in years) it would take to double your investment (to $20,000) using the Rule of 70 (make it clear on your spreadsheet that this is the Rule of 70) (ii) Then compare your results to the values you calculated for the $20,000 in your table by taking those values and subtracting them from the value you calculated using the "Rule of 70". (4 marks) 4. Answer the following questions. (a) You wish to invest $10,000 for a certain amount of time and you want to see what rate of interest, il2), that you need to earn in order to achieve a future goal. Set up a table and calculate the rate il2) that you would need to earn if you invested the $10,000 for 3, 5 and 7 years. Calculate the rate assuming the accumulated amount at the end of each of these periods is $10,500, $11,000, $11,500, $12,000, ..., $21,000. (You should end up with 22 x 3 = 66 calculations) (3 marks) (b) You also wish to see how long will it take an investment of $10,000 to grow to a certain amount at a certain rate of interest, 714). To do this, set up a table and calculate the time (in years) it would take for $10,000 to accumulate to $12,000, $12,500, $13,000, ... , $24,000. Use the following 5 rates of interest, compounded quarterly: 4%, 5%, 6%, 7% and 8%. (You will end up with 25 x 5 = 125 calculations) Then do TWO extra rows at the end of your table (leave one empty row between end of your table and these two calculations): (i) Calculate the time (in years) it would take to double your investment (to $20,000) using the Rule of 70 (make it clear on your spreadsheet that this is the Rule of 70) (ii) Then compare your results to the values you calculated for the $20,000 in your table by taking those values and subtracting them from the value you calculated using the "Rule of 70". (4 marks)